Judgment was yesterday (23/04/2018) handed down in the long-running cases of Investec Trust (Guernsey) Limited and another v Glenalla and others and in Rawlinson & Hunter Trustees S.A. v ITGL and another with the Judicial Committee of the Privy Council finding in favour of Macfarlanes’ client, ITG Limited (ITGL), on all issues.
The cases centre on the Tchenguiz Discretionary Trust for which ITGL, a subsidiary of Investec Bank plc, is the former trustee. The former trustees of the Tchenguiz Discretionary Trust had made loans of over £200 million to various BVI companies prior to the financial crash in 2008 and which had then gone into liquidation with liquidators arguing that the former trustees pay.
According to Macfarlanes, the Privy Council’s decisions are important for both the trust industry and the wider legal community, providing “much needed guidance in relation to a previously untested provision of the Trusts (Jersey) Law 1984.”
The law firm added that the decision also has important implications for parties contracting with any entity whose constitutive documents potentially include limitations on their liability.
Macfarlanes has advised ITGL throughout this eight-year litigation with litigation partner Dan Lavender and private client partner Sebastian Prichard Jones leading the team alongside senior solicitors Simon Day (litigation) and Richard Giangrande (private client).
Lauren Ekon, General Counsel for the Investec Group, commented: “We welcome today’s unequivocal judgment by the Privy Council, which has rejected all the claims by the Tchenguiz Discretionary Trust’s trustees and has found in ITG’s favour on all issues. We wish to thank the directors and employees of ITG, Dan Lavender and the team at Macfarlanes, Jeremy Wessels and Mourant Ozannes and our lead Counsel Simon Taube QC for their hard work over many years on this case.”
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